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House panel to look at repeal of Form 1099-MISC changes

WASHINGTON (2/16/11)—The House Ways and Means Committee has scheduled a look Thursday at a growing push to repeal a tax provision that would force companies to send 1099-MISC forms to any entity that has provided $600-worth of goods. The Credit Union National Association (CUNA) backs the repeal efforts. CUNA has said the requiring 1099-MISC forms on goods is an extremely burdensome reporting concept. It will require businesses to gather tax identification numbers and generate many millions of new tax forms that, CUNA maintains, will have questionable value in actually increasing federal revenue. Credit unions and other businesses have long been required to report to the on Form 1099-MISC certain payments of $600 or more that will be considered income by the IRS. As a "pay-go" effort to offset the cost to taxpayers of the new healthcare reform law, Congress extended the 1099-MISC reporting provisions to cover payments for goods valued over $600. Sen. Debbie Stabenow (D-Mich.) earlier this month successfully added a repeal provision to a pending Senate bill when she and 80 of her colleagues voted in favor of her amendment to S. 223. That bill is expected to pass the Senate this week. In the House, a repeal bill sports 271 cosponsors, representing enough backing to pass the measure when it come to a full House vote. The Obama administration also favors repeal. The hearing will begin at 9 a.m. (ET), and will be led by committee chairman, Rep. Dave Camp (R-Mich.). For more information on the hearing, use the resource link.